LONDON (ShareCast) - (ShareCast News) - Shares in Mothercare fell by nearly 8% after it reported a decline in sales during the first quarter due to a volatile international business.
Sales fell 3.5% year-on-year during the first three months to 11 July 2015 as macro headwinds hurt consumer confidence in a number of its markets.

International sales decreased 4.8% at actual currency rates or 1.3% at constant currencies.

The retailer for parents and young children said sales in the Middle East where hurt by a reduction in markdown and discount activity. It also felt the impact of the delay into sale in the second quarter which is after Ramadan and Eid.

Meanwhile, like-for-like sales in the UK rose 1.3% thanks to positive results from its strategic initiatives. The group said it delayed the end of season sale to take advantage of well controlled stock and the warm weather to sell more at full price.

However, total sales in the UK fell 0.9% due to ongoing store closures.

On the bright side, store refurnishment and the investment into online and in-store services have been encouraging, according to Mothercare.

Chief executive Mark Newton-Jones said: "It is still early days in our turnaround and we recognise that there is still much to do.

"Our vision remains clear - to be the leading global retailer for parents and young children."

Numis said that despite the slowdown in international sales, it believes growth should resume in due course.

"Although the shares may pause for breath after their exceptionally strong recent performance, we still view the risk/ reward as attractive on a year's view," the broker added.

Shares fell 7.81% to 264.58p on Thursday at 11:40.

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